By Toyin Adeniyi
For years, poverty kept many from attaining their dream of higher education.. Then, the Nigerian Education Loan Fund NELFUND came in
The loan scheme was heralded as a landmark initiative, an attempt to create easier access to higher education. Its purpose was simple yet profound. It was set up: to ensure that no Nigerian student is denied tertiary education simply because of financial constraints.
But like many ambitious government projects, the questions have always been the same; how effective will it be, who truly benefits, and can it stand the test of time?
At its core, NELFUND is designed to provide interest-free loans to students across the country. By removing the burden of tuition fees, the scheme promises to open doors of opportunity to millions of young Nigerians whose dreams are often cut short at the gates of tertiary institutions.
For a country where unemployment is high and family incomes are low, such a scheme is more than welcome.
Its management
The fund is managed by a dedicated board, with representation from government, educational institutions, and civil society stakeholders.
Its coverage extends to public tertiary institutions, with the promise of future expansion to vocational and technical schools, which is a necessary inclusion in a country where not every student will attend a university.
Students are expected to apply through a digital portal, with eligibility criteria including proof of admission to a tertiary institution . Repayment is structured to begin 2 years after graduation and is tied to the beneficiary’s income.
To its credit, NELFUND has recorded some success. The rollout has seen thousands of students apply and secure funding, providing immediate relief to families struggling with rising tuition fees.
The digital platform has reduced layers of bureaucracy and created a measure of transparency in application and disbursement. Public institutions have acknowledged that the scheme could stabilize their funding which will reduce strikes caused by inadequate finances.
The cracks
Yet, beyond the lofty vision, cracks are already beginning to show. The biggest challenge is trust. Nigerians are deeply skeptical about government initiatives and not without reason.
Past schemes, though promising on paper, have been marred by corruption, poor implementation, and exclusion of those who need them most. The digital application process, while modern, excludes thousands of students in rural communities with limited internet access.
There is also the question of repayment, with youth unemployment still hovering high, how realistic is it to expect graduates to pay back promptly? If beneficiaries cannot secure jobs, does NELFUND risk becoming another unsustainable debt portfolio?
Another pressing issue is scope. The scheme currently excludes private universities, where ironically, some of the country’s poorest students attend after being denied space in public institutions. If the goal is inclusivity, this limitation undermines the very spirit of the program.
The true test of NELFUND lies not in its initial fanfare, but in its sustainability. Will it be adequately funded year after year? Will repayment be effectively tracked without crippling graduates who are already grappling with harsh economic realities? Will it avoid the pitfalls of political interference that have sunk similar schemes in the past?
How the scheme can succeed
For NELFUND to succeed, transparency and inclusivity must be its watchwords. Clear reporting systems, and mechanisms to include disadvantaged students in rural areas are non-negotiable.
The government must also confront the uncomfortable reality that without creating jobs, repayment expectations are unrealistic.
The scheme must be linked to wider economic reforms that ensure graduates can find gainful employment.
In the end, NELFUND represents both hope and uncertainty. Hope, because it signals that the Nigerian state recognizes education as a right, not a privilege for only those that are financially advantaged. Uncertainty, because execution has always been the major challenge of policies in this country.
For the millions of students staring at the gates of universities they cannot afford, NELFUND is a lifeline. But for Nigeria, it is also a test of whether promises to the youth will finally be kept, or whether this too will become another story of squandered opportunity.